Morning Comments March 21, 2017
Tuesday, March 21, 2017, 8:03 AM
Submitted by: Landus Cooperative
Corn: 1 to 2 cents lower
Beans: 1 to 2 cents lower
Corn futures closed 3 ½ to 4 cents lower yesterday, while beans closed unchanged. Weakness in the wheat market yesterday combined with above-expected corn harvest progress in Argentina and rainfall in Brazil put downward pressure on the corn market. In the U.S., planting progress is ahead of where it was last year at this time, but that progress is expected to slow in the coming days due to rain in the forecast. While this may hold up planting, it should help with decreasing drought areas that have raised some concern (see below for the last week’s drought monitor). Soybean harvest in Brazil is estimated to be 2/3 complete, putting downward pressure on the soybean market.
Funds sold 8k corn and 2k beans yesterday. Everything suggests a tight trading range in the days to come. Most well-followed moving averages for December Corn (10-day, 20-day, 50-day, 72-day, 100-day, and 200-day) are between $3.85 and $3.92, indicating the market is looking for fresh direction. Last month’s Outlook Forum estimated U.S. farmers will plant 90 million acres of corn and 88 million acres of soybeans in 2017. Producers and funds alike are waiting to see how those numbers will line up with the report on March 31st. Make sure you are talking with your GMA before then about putting offers in.
Our speaker series continues this Wednesday, the 22nd, with Brian Grete, Editor of Pro Farmer. This meeting will be in Coon Rapids at the American Legion Hall. Registration at 10 a.m., meeting at 10:30, lunch at 11:30. Call us in Ames at 877-778-2226 to RSVP.
Also, this Friday, March 24th, is our “Surviving and Thriving in Challenging Times; Grain Marketing Forum for Women” event at the Scheman building in Ames. Visit http://www.aep.iastate.edu/womeninag to register and see the line-up of speakers. It looks to be a great event for women interested in learning more about grain marketing.